As of Sunday, Do Kwon, the disgraced co-founder of the Terra ecosystem that dramatically collapsed in May and for whom Singapore police had issued an arrest warrant, is no longer in the country.
Last Monday, Kwon and five others were named in an arrest warrant issued by South Korean prosecutors. He is largely responsible for the creation of two cryptocurrencies, whose stunning demise in May rocked global crypto markets.
According to Singapore Police:
“The SPF will assist the Korea National Police Agency (KNPA) in the area of our domestic law and international obligations. Do Kwon is not currently in Singapore.”
Blockchain platform Terraform Labs, which Kwon co-founded, has been accused of fraud by its investors after the company’s demise.
Prosecutors in Seoul have said since at least mid-September that he and others accused of violating the capital markets law were all in Singapore.
Where is Do Kwon? Image: Coinpedia
Do Kwon says he has nothing to hide
Do Kwon tweeted on Saturday after local police issued a statement saying they have nothing to hide and are providing “full cooperation” to government agencies.
The arrest warrant was issued after a lengthy investigation and public outcry in South Korea following the collapse. According to Elliptic, a blockchain analytics startup, Luna and TerraUSD investors around the world lost a total of $42 billion.
On Sunday morning, he tweeted, “I’m not ‘not running’ or anything like that,” though he didn’t specify where he was.
He assured the government that, “for any agency that has shown an interest in communicating,” they would be fully cooperative and not hiding anything.
The company “is defending itself in numerous jurisdictions … and expects to clarify the facts in the coming months,” he said.
Do Kwon: The sweet-talking crypto persuader
Kwon, 31, is one of the liveliest and most energetic crypto advocates out there.
In his prime, as co-founder and CEO of Terraform Labs, he would bravely confront skeptics and blow the crypto future out of proportion.
As a result of his persuasive skills, many people came to believe that the Earth ecosystem was the best place to invest.
Of all the factors contributing to the crypto market slump this year, TerraUSD stands out as particularly crucial.
Stablecoins like TerraUSD (or UST) were created with a single goal in mind: to maintain a constant value of one US dollar per coin, which it had done before its value plummeted this May: first with small sums and then plummet.
The high-profile failures of crypto lenders Celsius and Voyager and hedge fund Three Arrows Capital were precipitated by Terra’s demise, and that event has increased regulatory scrutiny of crypto investments and stablecoins.
According to reports, the US Securities and Exchange Commission is investigating whether Do Kwon’s Terraform Labs broke federal investor protection guidelines in the way UST announced.
Crypto total market cap at $937 billion on the daily chart | Source: TradingView.com Featured image from Cuteness, Chart: TradingView.com
